Q3 2008 - “Satisfactory third quarter” 

Schibsted’s result for the third quarter 2008 earnings shows unchanged operating revenues and a decrease in the operating margin of one per cent, to seven per cent. While circulation revenues remained unchanged, advertising revenues fell by three percent. The advertising markets worsened particularly throughout September, with the crisis in the financial markets a major explanatory factor.

Group CEO Kjell Aamot says that Schibsted delivered a satisfactory result in the third quarter, given the difficult market conditions. ”September in particular was difficult for many markets. We see it most in Aftenposten, where advertising revenues fell by 21 per cent,” he says. ”At the same time we are happy that a number of Internet operations continue to perform well. Our online newspapers saw a nine percent increase in operating revenues, while classified online ads grew by 26 per cent in the third quarter.

• The Group made a Q3 operating profit (EBITA) of NOK
  213 million (257 million), producing an operating margin of
  6.7% (8.1%).
• The revenues from the Schibsted Group’s online activities
  increased by 22% in Q3. Online activities accounted for
  80% of the Group’s operating profit (56%). 
• The Group has implemented a profitability programme with
  an effect of NOK 500 million on the Group operating profit
  (EBITA) in 2009. 
• The financial crisis has had a negative effect on the
  Group’s operating revenues. Developments have been
  particularly weak in the second half of September. Print
  classified ads have been especially affected. Operating
  revenues increased by 0.1% in Q3, of which advertising
  revenues fell by 3%. 
• Continued good growth in income from and high margins
  for online classified ads operations in Scandinavia and
  Southern Europe. 
• Product development and price increases for editorial
  products led to stable circulation revenues for Schibsted
  despite a reduction in VG’s and Aftonbladet’s circulation. 
• The new products Finn Reise, Hitta.se and Leboncoin.fr
  made a positive contribution to the Q3 operating profit. 
• It has been proposed to postpone the stock exchange
  listing of Media Norge for up to seven years. The company
  is planned to be formally established during the first half of
  2009. Schibsted proposes to increase Schibsted’s its
  ownership interest in Finn.no through the purchase of 38%
  of Finn.no from Media Norge. 
• A EUR 500 million borrowing facility with a three-year
  maturity has been signed. This replaces the bridge
  financing that was established when Trader International
  Classifieds was acquired in 2006.

(Figures in brackets refer to the corresponding period in 2007.)

 

• Quarterly report (PDF)
• Financial presentation
• Webcast
• Conference call (recording)  
• Financials and analytical info